Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended March 31, 2022
(Based on IFRS)
May 12, 2022
Company name:

Digital Garage, Inc.

Stock exchange listing: Tokyo
Securities code:
4819

URL

https://www.garage.co.jp/

Representative:

Representative Director,Kaoru Hayashi
President Executive Officer and Group CEO

Inquiries:

Managing Executive Officer,in charge of theMakoto Soda
Corporate Division

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

June 22, 2022
June 22, 2022

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

June 23, 2022
Yes

Holding of financial results meeting:

Yes

TEL

03-6367-1111(Amounts are rounded off to the nearest million yen)
1. Consolidated financial results for the year ended March 31, 2022 (from April 1, 2021 to March 31, 2022)(1) Consolidated operating resultsPercentages indicate year-on-year changes
RevenueYear ended March 31,2022
Year ended March 31,2021

Profit before tax
Millions ofyen

Profit attributable Comprehensive
incometo owners of parent
Millions ofMillions%%%
yenof yen

ProfitMillions ofyen%

72,95580.2

45,393 217.1

30,149 216.7

30,330 209.9

29,733 163.5

40,4789.6

14,317

9,518

9,786

11,284%

43.1

Millions ofyen

29.8

Basic earnings per Diluted earnings per
share
share
Yen
654.77212.49Year ended March 31, 2022
Year ended March 31, 2021

Yen
592.36193.8231.977.8

Return on equity
Ratio of profit before Ratio of operating
attributable totax to total assets
profit to revenue
owners of parent%
%
%
38.4
22.1
62.2
17.1
8.4
35.4

(2) Consolidated financial position
Total assets

As of March 31, 2022
As of March 31, 2021

Millions of yen
231,607178,301

Ratio of equity
Equity attributable toEquity attributable to attributable to owners
Total equity
owners of parent per
owners of parentof parent to total
shareassets
Millions of yen
Millions of yen%
Yen
97,217
95,73841.3
2,033.00
63,08262,134
34.8
1,348.45(3) Consolidated cash flows

Year ended March 31, 2022
Year ended March 31, 2021

Cash flows fromoperating activities
Millions of yen
7,059
7,047

Cash flows frominvesting activities
Millions of yen(7,978)(864)

1Cash flows from
Cash and cash equivalents
at end of period
financing activities
Millions of yen
Millions of yen
6,244
43,415(914)
37,989

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Total cash
dividends

Total

Dividend payout
ratioRatio of dividends
to equity
attributable toowners of parent

Yen

Yen

Yen

Yen

Yen

Millions of yen%%

––

0.00
0.00

––

32.00
35.00

32.00
35.00

1,475
1,648

15.1
5.3

2.6
2.1

–––––

Year ended March 31, 2021
Year ended March 31, 2022
Year ending March 31, 2023
(Forecast)–(Note 1. Fiscal year ending March 31, 2023 forecast is to be determined.)
3. Consolidated Earnings Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 to March 31, 2023)
In the field of investment and incubation in domestic and overseas unlisted companies in the Incubation Technology Segment, it is difficult toreasonably estimate the fair value of securities held by Digital Garage Group at the end of the fiscal year. Therefore, Digital Garage, Inc. does
not disclose consolidated financial forecasts.
4. Notes(1) Changes in significant subsidiaries during the year ended March 31, 2022
(changes in specified subsidiaries resulting in the change in scope ofconsolidation):(2) Changes in accounting policies and changes in accounting estimates
Changes in accounting policies required by IFRS:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

NoNo
No
No

(3) Number of issued shares (ordinary shares)
Total number of issued shares at end of period (including treasury shares)
As of March 31, 2022

47,482,800 shares As of March 31, 2021

47,441,900 shares

390,960 shares As of March 31, 2021

1,363,660 shares

46,322,198 shares Year ended March 31, 2021

46,051,295 shares

Number of treasury shares at end of period
As of March 31, 2022
Average number of shares during period
Year ended March 31, 20222

Consolidated financial statements
Consolidated statement of financial position(Millions of yen)
As of March 31, 2021

As of March 31, 2022

AssetsCurrent assets
Cash and cash equivalents

37,98943,415Trade and other receivables
Inventories

26,574264

24,462
347

Operational investment securities
Other financial assets

47,170912

77,950
277

21618

88
1,103

113,548

147,642

Property, plant and equipment
Goodwill

19,478
7,689

18,423
6,804

Intangible assets
Investment property

4,000
2,924

4,194
3,171

Investments accounted for using equity method
Other financial assets

22,446
7,878

27,80823,317

Deferred tax assets
Other non-current assets

60278

17231

Total non-current assets

64,75383,965

178,301

231,607

Income taxes receivable
Other current assets
Total current assets
Non-current assets

Total assets3

(Millions of yen)
As of March 31, 2022

As of March 31, 2021
Liabilities and equity
Liabilities
Current liabilities
Borrowings

9,768

9,223

Trade and other payables
Other financial liabilities

39,911
1,712

43,900
1,666

Income taxes payable
Other current liabilities

1,328
4,146

394
4,059

Total current liabilities

56,86559,242

Bonds and borrowings
Other financial liabilities

35,85012,16840,71010,683Retirement benefit liability
Provisions

452
485

480
480

Deferred tax liabilities
Other non-current liabilities

8,515
885

22,001
796

Total non-current liabilities

58,35575,149115,220

134,390

Share capital
Capital surplus

7,637
4,566

7,692
6,147

Treasury shares
Other components of equity(4,915)
2,062(1,409)2,273

Retained earnings

52,78581,035

Total equity attributable to owners of parent

62,134

95,738947

1,479

63,082

97,217

178,301

231,607

Non-current liabilities

Total liabilities
EquityNon-controlling interests
Total equity
Total liabilities and equity

4

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
March 31, 2022

Fiscal year ended
March 31, 2021
Revenue
Revenue in recurring business
Revenue in operational investment securities
Other income
Finance income
Share of profit of investments accounted for using equity
methodTotalExpenses
Cost of sales
Selling, general and administrative expenses
Other expenses
Finance costs

24,94524,83011,031
1,949

28,269954

59

13,161

2,495

5,741

40,47872,955

10,697

10,513

14,537617

14,818
1,881

311

349

26,161

27,561

Profit before tax
Income tax expense

14,317
4,798

45,393
15,244

Profit9,518

30,149Profit (loss) attributable toOwners of parent

9,786

30,330Non-controlling interests

(267)

(181)

Earnings per share
Basic earnings per share

212.49654.77193.82592.36

Total

Diluted earnings per share

5Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended

Fiscal year ended
March 31, 2021
ProfitMarch 31, 2022
9,518

30,1491,670(887)

(7)

810

1691

447

0(0)

Other comprehensive income, net of tax

1,766(416)Comprehensive income

11,28429,733

11,55029,911

(266)

(178)

Other comprehensive income
Items that will not be reclassified to profit or loss
Net change in fair value of equity instruments designated asmeasured at fair value through other comprehensive income
Remeasurements of defined benefit plans
Share of other comprehensive income of investments
accounted for using equity method
Items that may be reclassified to profit or loss
Exchange differences on translation of foreign operations
Share of other comprehensive income of investments
accounted for using equity method

Comprehensive income attributable toOwners of parent
Non-controlling interests

6Consolidated statement of changes in equity(Millions of yen)
Equity attributable to owners of parent
Other components of equity
Financial assets

Share

CapitalTreasury

capitalsurplussharesmeasured atfair value
through othercomprehensive
incomeBalance at April 1, 2020
Profit (loss)

7,591

4,409

(5,012)

–
46

–
46

–

Other comprehensive income
Comprehensive income
Issuance of new shares
Changes in ownership interest in
subsidiaries

178

Purchase of treasury shares
Transfer from other components ofIssuance of new shares
Changes in ownership interest in

1,125

(2)

324
–

1,678

92

(5)

1,765

1,678

92

(5)

1,765
–

97

–
–

(1)

–
(27)

(0)

–

157

96

(27)

–

–

(27)

7,637

4,566

(4,915)

853

1,217

(7)

2,062
–

(871)

443

8(420)

–––

(871)

443

8(420)

55

55

–

171

–

211

84

–
–

1,206

3,422

––

Dividends
Share-based payment transactions
Disposal of treasury shares
Transfer from other components of631

equity to retained earnings
Other
Balance at March 31, 2022

(798)

46

subsidiaries
Change in scope of consolidation

Total

Total

of defined
benefit plans–

Other comprehensive income
Comprehensive incomeof foreign
operations

Remeasurements(27)

equity to retained earnings
Other
Balance at March 31, 2021
Profit (loss)ontranslation(66)

Dividends
Share-based payment transactions

Total

Exchangedifferences

631

(63)

–

55

1,580

3,506

631

––

631

7,692

6,147

(1,409)

613

1,660

02,2737

(Millions of yen)
Equity attributable to owners of parent
Retained earnings
Balance at April 1, 2020
Profit (loss)

44,721
9,786

Other comprehensive income
Comprehensive income

9,786

Issuance of new shares
Changes in ownership interest in
subsidiaries
Dividends

52,0339,786762(267)

52,795
9,518

1,765

1

1,766

11,550(266)

11,284(66)(1,749)

27

Other
Total

Total

interests

91

Share-based payment transactions
Purchase of treasury shares
Transfer from other components ofequity to retained earnings

Non-controlling

Total91452

386(1,749)(1,749)

275
(1)

275
(1)

––(0)

(0)

(1,721)(1,449)

452

(997)

52,785

62,134947

63,082

Profit (loss)
Other comprehensive income

30,33030,330(420)(181)
430,149(416)

Comprehensive income

30,33029,911(178)

29,733

Balance at March 31, 2021

Issuance of new shares
Changes in ownership interest in

111

subsidiaries
Change in scope of consolidation
Dividends
Share-based payment transactions
Disposal of treasury shares
Transfer from other components ofequity to retained earnings
OtherTotal
Balance at March 31, 2022

(1,475)

111

171

643

814

–

67

67

(1,475)295(1,475)295

4,629

4,629(631)

––

25

(38)

(38)

(2,081)

3,693

710

4,403

81,03595,738

1,479

97,2178

Consolidated statements of cash flows
Fiscal year ended(Millions of yen)
Fiscal year ended

March 31, 2021

March 31, 2022

Cash flows from operating activities
Profit before tax
Depreciation and amortization

14,317
3,637

45,3933,620

Impairment losses
Interest and dividend income

231
(19)

1,372
(12)

Interest expenses on borrowings and bonds
Share of loss (profit) of investments accounted for using

238

242

(2,495)(5,741)(39)(12,581)

Loss (gain) on sales of shares of subsidiaries and associates
Loss (gain) on transfer of business(1)(1,103)––

Decrease (increase) in trade and other receivables
Decrease (increase) in investment securities for sale22(10,527)

2,383(30,444)

Decrease (increase) in inventories
Increase (decrease) in trade and other payables

54(521)

(82)
4,170

Increase (decrease) in accrued consumption taxes
Other

1,422
1,136(534)356

Subtotal

6,352

8,142

Interest and dividends received
Interest paid

1,450(74)1,453(71)

Income taxes refund (paid)(681)(2,465)

Net cash provided by (used in) operating activities

7,047

7,059

Purchase of property, plant and equipment
Purchase of intangible assets(1,501)(1,706)(1,501)(1,354)Purchase of investment securities
Proceeds from sale of investment securities

(186)
1,865

(4,794)340

Payments for acquisition of subsidiaries
Purchase of investments accounted for using equity method–(513)

(301)
(563)

Proceeds from sale of investments accounted for using equitymethod

80–

Proceeds from sale of businesses
Other541
555

–
193

Net cash provided by (used in) investing activities(864)(7,978)equity method
Loss (gain) on investment securities

Cash flows from investing activities

9Fiscal year ended(Millions of yen)
Fiscal year ended

March 31, 2021

March 31, 2022

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

2,002
3,526

2,650
11,700

Repayments of long-term borrowings
Repayments of lease liabilities(3,270)(1,861)(10,330)(1,738)

417
–

881
4,629

(1,748)19(1,474)
(74)

(914)

6,244

Capital contribution from non-controlling interests
Proceeds from disposition of treasury shares
Dividends paid
OtherNet cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

17102

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

5,286
32,702

5,427
37,989Cash and cash equivalents at end of period

37,98943,41510